GST Council Meeting: Pre-filled GST returns like ITR, easy registration and more in SBI Research wish list

The government should use technology to simplify the GST registration process and also implement pre-filled returns to reduce manual intervention and eliminate mismatches, SBI Research suggested ahead of the GST Council meeting.

In a report dated September 2, 2025, SBI Research said GST refunds should also be processed more efficiently in an automated manner.

Notably, the income tax return (ITR) filing system already features pre-filled returns, making the filing process easier for taxpayers.

The GST council will discuss many other crucial matters, including ease of compliance and the future of compensation cess.

SBI Research has suggested a number of other issues that the GST Council should address, other than rate rationalisation.

Key GST reforms

Here are some suggestions from SBI Research:

• The government may have a surplus of ₹50,000 crore in the compensation fund. These funds could be used to compensate the states for revenue loss due to rate rationalisation under the GST rejig.

• To promote ease of living, the government should enable pre-filled returns to speed up the GST registration process and remove the need for manual intervention by leveraging technology.

• The GST Council should come up with a plan to include petroleum, electricity and aviation turbine fuel under GST.

• The council should also address the inverted tax structure under GST. Where input taxes are higher than output tax rates, it leads to the accumulation of unutilised input tax credit (ITC) and higher business costs. This is often passed on to consumers.

Earlier GST rejigs have led to stronger inflows in the long run after a brief period of adjustment. While the reduction might induce a short-term drop of around 3-4% month-on-month, revenues usually rebound with a sustained growth of 5-6%, SBI Research said.

“Evidence from earlier rounds of GST rate changes, such as those in July 2018 and October 2019, suggests that rationalization does not necessarily weaken revenue collections. Instead, the evidence points to a temporary adjustment phase followed by stronger inflows. While an immediate reduction in rates can cause a short-term dip of around 3-4% month-on-month (roughly ₹5,000 crore, or an annualized ₹60,000 crore), revenues typically rebound with sustained growth of 5-6% per month,” it said.

Further, the report suggests that GST rate rationalisation should be seen as a structural measure that simplifies the tax system and reduces compliance burdens, along with improving voluntary compliance.

“Importantly, rationalisation should be seen less as a short-lived stimulus to demand and more as a structural measure that simplifies the tax system, reduces compliance burdens, and enhances voluntary compliance, thereby widening the tax base,” SBI Research said.